Moelis & Company Investment Banking Pitch Book
Wall Street Commentary
Barrington Research $15.00
10/08/15
Buy
BRILEY
10/27/15
Buy
STIFEL
NICOLAUS
10/13/15
Hold
PiperJaffray.
10/12/15
Buy
DOUGHERTY & COMPANY
10/13/15
Buy
TARGET
PRICE
MEAN
MANAGEMENT
$16.00
N/A
$15.00
$14.00
$15.00
Source: Wall Street Research
FY16E
ADJ. EBITDA
$67.2mm
$69.4mm
$68.3mm
$67.6mm
$76.6mm
$70.0mm
$73.1mm
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STRICTLY CONFIDENTIAL
MOELIS & COMPANY
"Fundamental improvement in profitability will result from the improved film slate over the next several quarters
combined with cost cuts and somewhat better product gross margins"
■ "The strategic evaluation should provide an added support to the stock"
. "We believe our preview this week is more timely given the increasing potential for positive actions around the
strategic review between now and that earnings release date."
▪ "With almost 9 months since the Board began its strategic review process... we believe the pressure may be on for this
process to come to a conclusion"
"We continue to believe the risk/reward remains attractive at these levels given... the variety of potential outcomes to
the process"
"We view the continued strategic review as a negative at this stage, the realistic pool of bidders is relatively limited
and will not include exhibitors or studios and as a result we are perplexed as to the duration the review has taken
other than to think a sale is unlikely"
"Investors have been frustrated with the slow strategic evaluation process which has resulted in numerous
extensions to the bidding deadline"
■ "We think additional bidders and updated financials are the reason for the most recent delay"
■ "The delay is not a bad thing for...shareholders in our view, as it brings in fresh bidders, enables [Rhombus] to
update financials (better film performance and better clarity on consumer initiatives), provides more time to resolve
patent lawsuits, but also keeps Starboard Value at bay"
"Filed an 8K declaring that the deadline for proxy submissions has been extended yet again to the period between
October 15th and 30...we take the extension as a signal that the company's process is still ongoing"
▪ "Our belief is that management is using the extra time to finalize some sort of licensing agreement around its
consumer technology"
■ "Baring that the strategic process concludes with the sale of the company, we anticipate management unveils some
cost cuts, but we believe that it will take the influence of a major shareholder, like Starboard, to pressure the company
to cut deep enough to maximize the opportunity"
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