Premier Exhibitions, Inc (PRXI)
Q4 2011 Earnings Call
May 24, 2011 09:00 am ET
Christopher J. Davino – President, Chief Executive Officer and Director
Samuel S. Weiser – Interim Chief Financial Officer
Brian Wainger – Vice President and Chief Legal Counsel
Norman Klein – Private Investor
Sam Yake – BGB Securities, Inc.
Jason Braswell – Private Investor
Anthony Bozanich – Bgi Capital Management Inc
Previous Statements by PRXI
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Good day and welcome to the Premier Exhibitions, fourth quarter and fiscal year 2011 earnings results conference call. Today’s conference is being recorded. I will remind everyone that we will be making forward-looking statements on today's call. These forward-looking statements are based on our current expectations and are subject to a number of risks and uncertainties.
Actual results may differ materially. Please refer to the risk factors identified in our Form 10-K for the period ended February 28th, 2010, and our subsequent filings with the Securities and Exchange Commission.
And now, I will hand the call over to Christopher Davino, Chief Executive Officer of Premier Exhibitions, Inc. Please go ahead.
Christopher J. Davino
Good morning everyone. In a moment, I am going to turn the call over to Sam Weiser, our Interim CFO, who will address our fourth quarter results. But first I want to provide some perspective on the full-year fiscal ’11. I will describe our efforts to scale back the business over the last few months and lastly, give some color regarding strategic initiatives that we currently have underway.
In fiscal ’11, I think it is fair to say that management pursued relatively bold strategic initiative in an attempt to dramatically reposition the Company. We did that in a few regards. First, we attempted to unlock value inherent in the collection. We focused on building a dynamic business model around Titanic going well beyond the narrow confines of the exhibition business, creating new assets and revenue streams and establishing real brand ownership of Titanic, which we believe is critical in realizing on those opportunities.
Next, we pursued a relatively aggressive plan to relaunch Bodies. That included reimagining the exhibition itself, and obviously expanding the self-operated touring model. And last, we pursued a new content development by focusing on instilling best practices, with regard to the development effort, bringing in proven capabilities on a contracted as-needed basis, as well as identifying certain opportunities for our future pipeline.
Let me briefly recap those initiatives where I believe we were successful, areas where we fell short and one in particular where we performed poorly. Let me take that last issue first. Clearly, with regard to the Bodies self-operated touring model, our results were poor. The bottom line is, in my tenure here at Premier we have put 30 shows in the marketplace. One or two have done reasonably well, a handful have had breakeven, some modest results. The balance, candidly, lost money. In some cases, significant amounts.
As a consequence of those results, we have made the strategic decision to take advantage of certain Bodies leases terming out and returning three full Bodies sets to Dr. Sui. With that, we took the opportunity to dramatically scale back the infrastructure and to take significant costs out of the system on a permanent basis. Sam will go into some detail about that.
I think, it is fair to say that, other than the Bodies touring model, I believe our other initiatives were largely successful. For Titanic, we successfully executed the expedition to the wreck site. In this regard, importantly, we were able to bring in, as partners to the mission, leaders in the oceanographic and archaeological space, really spanning both the public and private sectors. The mission produced our key objectives. We created the first ever comprehensive self-survey map of the wreck site. We generated the data sets and imagery to produce
“Virtual Titanic”, which I have talked about in the past, which are the mosaics of the bow and the stern sections of the ship. And we really did, I think, a good job in setting the table to produce multiple revenue streams down the road.
In addition to that, I believe we made significant strides with regard to our web and social media platforms, together with our partnership with NBC and its affiliates, allowed people the world over to follow this groundbreaking mission to Titanic. And really establish RMST as the rightful owner of the brand.
In addition to Titanic, I believe the relaunch of the Bodies exhibition was also successful. We reopened the show in January and I believe what we put out to the marketplace is a much more vibrant, educational and visually engaging experience grounded in the storyline, Your Amazing Body.
The show has been well received by the media and consumers and we are hopeful that the show will reverse the attendance declines that we have experienced over the last several years. In terms of new content, I believe we have also made relatively significant strides. I think that will be evident in the launch of Dialog In The Dark in New York. I would classify Dialog as new content due to the dramatic changes that we are implementing as compared to the Atlanta show, but I will get into that in a minute.
Also, for new content, we have gone public with the Playboy project where we put substantial development efforts into that over the last year. Not to spend a lot of time on it, but suffice it to say that we believe we have created a very unique and compelling experience that goes well beyond the historical static exhibition model. We are in the process of seeking partners and investors, so that should bring needed promotional capabilities to the table and to share in development costs.