| Four Media Company | |||
| Ticker: | FOUR | 2813 West Alameda Avenue | |
| Exchange: | NASDAQ-National Market | Burbank, CA 91505 | |
| Industry: | Service (SIC Code 7819) | (818) 840-7000 | |
| Type of Shares: | Common Shares | Filing Date: | 10/8/96 | |
| U.S. Shares: | 5,000,000 | Offer Date: | 2/7/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $10.00 - $12.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.70 | |
| Offering Amount: | $55,000,000 | Selling: | $0.42 | |
| Expenses: | $2,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Furman Selz Incorporated | Lead Manager | (212) 309-8285 |
| PaineWebber Incorporated | Co-manager | (212) 713-2626 |
| Issuer's Law Firm: | Troy & Gould |
| Bank's Law Firm: | Pillsbury Madison & Sutro |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 8/4/96 | 8/4/96 | ||||
| Revenue: | $70.03 | Assets: | $81.83 | ||
| Net Income: | $2.42 | Curr Assets: | |||
| EPS: | Liabilities: | $59.68 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $22.14 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Four Media Company is a leading provider of technical, creative and broadcast services to owners, producers and distributors of television programming, feature films and other entertainment content in the United States and Asia. The name Four Media comes from the company's core competencies in film, video, sound and data. The company's services integrated and apply a variety of systems and processes to enhance content creation and distribution. The company seeks to capitalize on growth in domestic and international demand for original entertainment content and for existing television and film libraries without taking production or ownership risk with respect to any specific television program, feature film or other content. During the past three fiscal years, the company has invested $58.1 million in infrastructure, primarily for new digital systems and equipment. |
| Competition |
| Los Angeles is the center of domestic television and feature film production and the exploitation of content libraries. It is also the largest and most competitive market in the world in terms of total revenue potential in the company's studio, television and visual effects business segments. The entertainment services industry in Los Angeles is highly fragmented, and no single participant ,including the company, has a dominant market share in any service offering. |
| Business Plan |
| The company seeks to benefit from the increasing worldwide demand for original entertainment content and the development of new markets for existing television and film libraries. The company intends to increase its market share and to establish a brand identity in the markets it serves by executing the following growth strategies: 1) seek consolidation opportunities; 2) offer complete outsourcing solutions; 3) deploy leading technologies; 4) expand internationally; 5) establish strategic alliances; 6) capitalize on the increasing application of digital technology. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repayment of certain indebtedness, capital expenditures, working capital and other general corporate purposes including acquisitions. |