Finally, Monday, six months after a winning bidder was to have been announced, Premier announced that it has signed a non-binding letter of intent to sell the RMS Titanic business for $189 million. This sent shares of Premier, whose market cap was $114 million at the end of regular trading Monday, up more than 20% in after-hours trading.
While this is far from a done deal, there was other news Monday that sent Premier shares higher during regular trading, prior to the Titanic artifact announcement. Premier announced a 63% increase in revenue for the second quarter, and net income of $2.76 million, or 6 cents per share.
This was unexpected, from a company that had struggled to put up decent numbers for several years. At one time, Premier was considered a growth name, and shares traded as high as $18 back in 2007, on the strength of the "Bodies . . . The Exhibition" brand. But controversy over that exhibition, leveled by a 20/20 investigation of the company, and the subsequent recession, sent shares below $1 by early 2009.
The recent "discovery" of Premier by some value investors was all about the potential value of the Titanic assets, and not a re-birth of the exhibition business. Monday's announcement breathed life into the notion that shareholders may finally realize value not only from the sale of the Titanic artifacts, but perhaps also from the exhibition business.
I almost threw in the towel on this story several times. While it's not over yet, I am buckling up for another roller coaster ride.
At the time of publication, the author was long PRXI.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.