Moelis & Company Investment Banking Pitch Book
Situation Overview (cont'd)
STRICTLY CONFIDENTIAL
MOELIS & COMPANY
▪ On April 17, 2015, five potential buyers submitted initial indications of interest ("IOI") for the Company (1 strategic and 4 financial,
including Starboard)
The values submitted in the IOI's received ranged from $12.00 to 15.00 per share
A sixth IOI, with a value range of $12.50 to $14.50 per share, was received from another strategic buyer on July 2, 2015
The Company conducted six management presentations during the months of May, June and September
▪ Following management presentations, the Company, Moelis and potential buyers began conducting due diligence
▪ Consistent with the Company's normal budgeting process, during the months of June through September, the Company's financial
projections were revised, in part or in total, four times due to:
Lower than expected financial results for certain 3D films
Certain films no longer being slated to be shown in 3D (e.g., The Hunger Games: Mockingjay Part 2 in the US)
An inability for the Company to reduce its operating expenses to the levels announced on December 4, 2014 due to Management's
decision to continue to invest in select R&D initiatives
As a result, the Adjusted EBITDA projections provided to potential buyers in March 2015 were revised downward:
• Adjusted EBITDA Projections (March 2015): FY 2016 - $86.6mm, FY 2017E - $90.0mm, FY 2018E- $96.2mm
Adjusted EBITDA Projections (September 2015): FY 2016 -$73.1mm, FY 2017E-$83.3mm, FY 2018E-$90.9mm
▪ On June 11, 2015, the Company reported FY 2015 Q4 Adjusted EBITDA of $2.4mm versus consensus estimates of $1.2mm and EPS of
(S0.36) versus consensus estimates of ($0.34)
▪ On August 5, 2015, the Company reported FY 2016 Q1 Adjusted EBITDA of $24.6mm versus consensus estimates of $26.5mm and
EPS of $0.14 versus consensus estimates of $0.16
Following the FY 2016 Q1 earnings announcement, the Company's stock price fell from $12.60 on August 4, 2015 to its 52-week
low of $8.91 on August 24, 2015
[5]View entire presentation