ROADSHOW SLIDES:
The presentation was one of the best I've ever seen. Extremely well produced, and the management team was very impressive. They had the CEO, head of software development and CFO. They had a multimedia presentation that included clips of all th eold and new projects, an animated video tour of their production facilities (very impressive). They also showed some of the movie, new TV show and the rebranding of ReBoot 3 which looks like it could really be a breakthrough season. It is very complex visually, with new characters and a more adult feel to it, yet retaining the adolescent appeal. Could make it an even bigger hit.
Anyway - here's the slide's that went with the show.
1. Business areas - TV, Home video, interactive products/video games, merchandising/licensing, music production, feature films, ridefilms. Future business areas: internet, direct to home video, visual effects, feature film home video.
2.Review of Major Productions
ReBoot
- 23 Episodes in seasons 1&2
- sold in over 60 countries and dubbed in 8 languages
- winner of 4 geminis
- int'l home video dist. by polygram
- consistently high ratings in can, us and int'ly
- #2 show to another Mainframe production in Can/US
- 16 episodes scheduled for 97/98
3. Beasties/Beast Wars
based on popular line of Hasbro toys
- 26 episodes in season 1
- YTV & Claster (US)
- Highest rated show on YTV
- Seasons 2 - 13 episodes scheduled
- sold in over 30 countries
(Only doing an initial 13 even though Hasbro wants 26. Reason, HK Toy manufacturer is interested in 2-3 TV series with Mainframe and are willing to give a nice percentage of toy sales. Were able to increase the price to Hasbro for these 13 episodes, but want more leverage to increase toy royalty. I was totally surprised to hear that Mainframe does receive a toy royalty on Beast Wars toys! Evidently, toy sales are up over 600% since show aired. Toys hard to find, Toys r Us will not discount them, always full price and expensive (9-$20), but still sell out. COULD BE HUGE, THESE GUYS KNOW HOW TO NEGOTIATE!
4.Closing Time
- Third and newest TV series
- can/france co-prod with Millesime Prod.
- allows for access to additional incentive programs
- new application of 2d/3d technology
-13 episodes planned for this year.
5 Sign of the Seahorse
- Full length 3d cgi animated feature filme for theatrical release
- based on best-selling childrens book by Graeme Base
- JV with Paul Allen's Storyopolis
(Theme: Underwater West side story with music by author)
6. Merchandising & Licensing
- digital technology creast many opportunities
- creates additional sources of revenue
- over 100 ReBoot licenses worldwide including Irwin Toy
- Proprietary software - Toy - facilitates M&L opportunities
7. Ridefilems
- Strategic partnership with IMAX copr.
- 2 motion ride simulation filsm, with option for 3rd, based on ReBoot
- first delivery June, 2nd end of summer
8.Interactive products
-Reboot video game to be produced by Elec Arts
- to be release on Sony Playstation
- Worldwide launch scheduled for Aug 1997.
(Preliminary focus group studies ranked it extraordinarily highly)
9.The Mainframe Advantage
- A unique production workflow supported by a set of proprietary software tools
- addresses bottlemnecks in digital animation producstion
- Beast Wars proved the effectiveness of the system:
26 half-hours episodes created within 14 months.
(the number of animation sequences to make up an episode was staggering, I forgot the number though, but what they're doing is mindblowing)
10.Mainframe Advantage - Proprietary Software
- Lipsyncing
Grin developed 1994
BeepScan developed 1994
- Render management
SideKick developed 1996
- ImageManagement
Slate - 1994
Flipper - 1995
Shot - 1995
No on else has similar software. Major companies have asked to license it. Mainframe wants to keep it for production advantage. Since no one else produces CGI as quickly as they do, they figure they have a 3 year lead because it took them that long to figure out how to do it. Key is Animators can spend time on enlivening the character, not worrying about lipsyncing etc....
11.Corporatre History
- Established in 1993 to develop ReBoot series
- 1996 reorganization and private placement which:
Created present corp structure
reduced Alliance's ownership
achieved first profitable year in 1997
12.Income Statement
13.Revenues & Minutes of Production
1995 - rev = 8mil, minutes of prod = 210 minutes
1996 rev = 9.4 mil, mop 273
1997 rev = 19.5mil, mop 560
1998 min of prod will be over 900
14 EBITDA (1997 4.9mil)
15 Net Income (1997 .2 mil)
16 1998 & beyond
New TV series
reboot 3
beastwars 2
closing time
feature film
m&l
video games
ridefilms
sign of seahorse
17.bal cheet
- conservatively financed with subordinated convertible debentures (will convert on offering so there will be no debt in company)
- capital leases provide funds for acquisition of computer & prod equip
- programing costs amortized as per FASB 53 guidelines.
18. bal sheet:
- total assets 24.28 mil
19. Use of proceeds
- proceeds of $27mil (net)
- 6.4 mil additional prop, plant, equip
- finance pre-prod of cgi film 7.5mil
- interim financing of TV prods 7.5 mil
- working cap = balance
20. Highlights
- Leading producer of 3d cgi animation
Growing production scheduler & product pipeline
Multiple uses of programming
valuable strategic partnerships
strong experienced management team
21: Offering
Shares post offering 14.3 million
Pricing May 23
Closing June 5
Ownership: Public 52%
Management 40%
Alliance 8% |
