Premier Exhibitions (Premier Exhibitions) Free Cash Flow

: $-15.31 Mil (TTM As of Aug. 2015)

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Premier Exhibitions's total free cash flow for the months ended in Aug. 2015 was $-2.00 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Aug. 2015 was $-15.31 Mil.

Premier Exhibitions's Free Cash Flow per Share for the months ended in Aug. 2015 was $-0.41. Its free cash flow per share for the trailing twelve months (TTM) ended in Aug. 2015 was $-3.11.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

Premier Exhibitions Free Cash Flow Historical Data

The historical data trend for Premier Exhibitions's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Premier Exhibitions Annual Data

Trend

Feb06

Feb07

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Free Cash Flow

-5.15

-1.98

4.26

-2.63

-5.39

Premier Exhibitions Quarterly Data
	Nov10	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15
Free Cash Flow																0.63	-2.54	-4.23	-6.54	-2.00

Premier Exhibitions Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Premier Exhibitions's Free Cash Flow for the fiscal year that ended in Feb. 2015 is calculated as

Free Cash Flow (A: Feb. 2015 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-1.386	+	-4.001
	=	-5.39

Premier Exhibitions's Free Cash Flow for the quarter that ended in Aug. 2015 is calculated as

Free Cash Flow (Q: Aug. 2015 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-1.909	+	-0.093
	=	-2.00

Free Cash Flow for the trailing twelve months (TTM) ended in Aug. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-15.31 Mil.

Premier Exhibitions (OTCPK:PRXIQ) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Aug15, Premier Exhibitions's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Aug15)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	2.29	+	0
	=	0.00 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Premier Exhibitions Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Premier Exhibitions's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

Premier Exhibitions (Premier Exhibitions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Premier Exhibitions Inc (OTCPK:PRXIQ) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

N/A

Address

3045 Kingston Court, Suite I, Peachtree Corners, GA, USA, 30071

Website

http://www.prxi.com

Premier Exhibitions Inc is engaged in providing leisure services. It develops and sets up tourism-related exhibitions for the purpose of education and entertainment. The company's exhibitions present opportunities to experience compelling stories using authentic objects and artifacts in diverse environments. Its exhibitions are presented in museums, exhibition centers, and other entertainment venues. The company's services include content development, exhibit design, brand development, space planning and detailed fabrication drawings. It also offers merchandising services.

Executives

Alta Fundamental Advisers Llc	10 percent owner	1500 BROADWAY, SUITE 704, NEW YORK NY 10036
Sellers Capital Llc	other: See Remarks	311 S WACKER DR STE 925 CHICAGO IL 60606
Sellers Capital Master Fund, Ltd.	other: See Remarks	C/O M&C CORPORATE SERVICES, UGLAND HOUSE S. CHURCH ST, PO BOX 309 GT GEORGE TOWN, GRAND CAYMAN E9 CAYMAN
Mark A Sellers	other: See Remarks	SELLERS CAPITAL 161 N CLARK ST STE 4700 CHICAGO IL 60601
Mingcheng Tao	director	3340 PEACHTREE ROAD NE, SUITE 900, ATLANTA GA 30326
Jack H Jacobs	director	101 OAKS ROAD, MILLINGTON NJ 07946
Richard Kraniak	director
Mark Mcgowan	director	C/O COMBIMATRIX CORPORATION, 6500 HARBOUR HEIGHTS PARKWAY, SUITE 303, MUKILTEO WA 98275
Bruce David Eskowitz	director, officer: President and CEO	202 N. CRESCENT DRIVE #1, BEVERLY HILLS CA 96210
Joseph B Marsh	10 percent owner	605 SURFSIDE DRIVE AKRON OH 44317