Premier Exhibitions Inc. Reports Operating Results (10-Q)
Premier Exhibitions Inc. has a market cap of $91 million; its shares were traded at around $1.9 with and P/S ratio of 2.1. PRXI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Due to both the lack of historical investment in the core business as well as the scope and breadth of our initiatives themselves, we will require between $7 million and $8 million of capital investment during the year ending February 28, 2011 (fiscal 2011). We estimate cash on hand and cash flows from operations will be adequate to fund these initiatives. As of August 31, 2010, approximately $5 million has been spent on these initiatives, the majority of which has been capitalized.
Revenue. During the quarter ended August 31, 2010, our revenue increased by $0.3 million or 2 percent to $13.7 million compared to the same quarter in the prior year, which is primarily attributable to an increase in exhibition revenue. Exhibition revenue of $12.6 million increased by $0.1 million on decreased attendance of 1,176,184 for the three months ended August 31, 2010, compared with 1,324,495 for the same quarter last year. Attendance at our Titanic exhibitions increased by 143,405 this quarter compared with last year. Total exhibition days, which is the total number of days our exhibitions were open to the public, increased to 1,757 for the three months ended August 31, 2010 compared to 1,639 for the same period last year. Although the total number of exhibitions available to tour decreased by 2 to 22 this year, we managed to keep our touring capacity booked this year as compared to having part of our touring capacity last year in storage with no place to go. This increase in exhibition days was largely accomplished by self-operating in more markets than in the prior year period. Average attendance per exhibition day decreased 17 percent, with some locations, like Las Vegas, increasing, and others, particularly touring exhibitions, attendance hovering at or near break-even gross margin levels.
Benefit from (provision for) income taxes. We recorded an income tax provision of $0.03 million for the three months ended August 31, 2010 versus a tax benefit of $0.3 million for the same period in the prior year. In the fourth quarter of last year, the Company ceased recording the benefit of net tax losses currently. Therefore, the current period tax provision reflects taxes paid in states where we do not have the benefit of net operating loss carryforwards. There is no provision for Federal income taxes in the current quarter.
Net loss. We realized a net loss of $0.2 million during the quarter ended August 31, 2010 as compared to a net loss of $0.5 million in the prior year period.
(Loss) income per share. Basic and diluted loss per common share for the quarter ended August 31, 2010 was $0.00 as compared to basic and diluted loss per share of $0.02 for the quarter ended August 31, 2009. The basic and fully diluted weighted average shares outstanding for the three months ended August 31, 2010 were 46,853,678 compared to basic and fully diluted weighted average shares outstanding for the three months ended August 31, 2009 of 30,212,306.
Operating expenses. Our general and administrative expenses of $8.9 million decreased by $5.9 million or approximately 40 percent during the six months ended August 31, 2010 as compared to the six months ended August 31, 2009. We had significantly lower compensation expenses in the current year due to a decrease in our salary structure and significantly lower severance expenses. Additionally, we had a decrease in legal and professional fees in the current year. Also, the prior year included significant bad debt expense associated with taking over the New York City Bodies exhibition.
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