Tag Archives: RMS Titanic Inc

Titanic, Titanic Exhibitions

Premier Exhibitions Seeking To Sell Company Or Assets

For Sale by Owner SignAccording to Atlanta Business Chronicle, Premier Exhibitions (which owns RMS Titanic, Inc and Titanic:The Artifact Exhibition), reported in a regulatory filing that the board of directors approved a review of “strategic alternatives.”

“The board of directors is working to pursue all appropriate actions to enhance the value of the company for its shareholders,” said Mark A. Sellers, chairman of the board of Premier Exhibitions. “To that end, we have determined that a broad evaluation of strategic alternatives led by a top tier investment bank should be the next step in that process and we are very excited to have engaged a prominent, New York based investment bank as our adviser.”

That sounds like they are preparing to sell the company or perhaps parts of it to other interested parties. With the Titanic artifact sale up in limbo at this point (a consortium backed out since it could not raise the money) and likely no deal in the immediate future, it probably means they would prefer someone else have that headache. Do not be surprised if a sale ends up being done either to a gulf state business or to a Chinese company. Both areas been making moves to capitalize on the Titanic tourist trade.

Source: Premier Exhibitions Investigating ‘Strategic Alternatives’(11 Mar 2014,Atlanta Business Chronicle)


Titanic Exhibitions

Titanic Exhibition Opens Saturday In South Florida

South Florida Science Center & Aquarium
Photo: WIkipedia

Titanic:The Artifact Exhibition will open at the South Florida Science Center & Aquarium in West Palm Beach on 16 Nov. The exhibit will run till 20 April 2014. For hours and ticket prices go to sfsciencecenter.org. As always plan ahead as tickets often sell out fast at these exhibitions.

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Titanic

Premier Exhibitions Stock Downgraded To Sell By TheStreet

graph downAnalysts at TheStreet has downgraded its rating from hold to sell. According to the analysis, the reasons for the downgrade are:

  • The company has significantly underperformed in net income in the same quarter a year ago. Net income decreased by 102.3% compared to same quarter a year ago.
  • Operating cash flow has decreased.
  • Stock performance is bad. It tumbled 33.49% and company’s earnings per share are down.
  • Return on equity has only slightly improved from same quarter last year. While that is good, its return on equity trails that of others in the same industry.
  • Gross profit margin is still high at 51.21% but still shows a decrease from last year at the same period.

The stock(PRXI) closed down today (14 Oct 2013) at $1.36.

Source: Premiere Exbitions Inc Stock Downgraded (13 Oct 2013, TheStreet)

Titanic

Premiere Exhibitions:It’s Official-Deal To Sell Artifacts Terminated

For Sale by Owner Sign
Wikipedia

In its most recent financial report, Premiere Exhibitions announced the following:

While both parties have worked diligently to finalize a transaction to transfer the Titanic assets, the Company terminated the non-binding LOI with the Hampton Roads consortium effective today. Mr. Weiser stated, “We always believed that Hampton Roads was an ideal location for the permanent home of the collection and the proposed transaction met our criteria of price, court satisfaction and tax efficiency. However, this group has failed to secure sufficient financing so we believe the Company needs to focus on pursuing alternatives to effect a sale of these assets for the benefit of shareholders. From the Company’s perspective, we view the termination of the LOI not as the end but as a new beginning for the process; one that will get us closer towards finalizing this in a manner that fulfills our shareholders’ expectations and satisfies the requirements of the court.”

The actual names behind this consortium has never been reported but the Virginian-Pilot reports that at one time The Mariners’ Museum in Newport News had been negotiating but could not raise the money.

Premiere also announced its second-quarter revenue was done by 42% from the same period last year. Gross profit dropped by half to $4 million compared to $8.2 million a year ago. Hurricane Sandy hurt when it forced closure of Manhattan Titanic along with more money being spent elsewhere on the 100th anniversary of Titanic sinking.

Sources:
1. Deal For Titanic Artifacts Terminated(10 Oct 2013,Virginian-Pilot)
2.Premier Exhibitions Reports Second Quarter Fiscal 2014 Results(9 Oct 2013,Global Newswire-press release)

Titanic

Titanic Salvage Sale Appears Either Dead Or Looking For New Buyer

On 28 May, Premier Exhibitions put out its Full Year and Fourth Quarter 2013 Results. For Sale by Owner SignDeep down in the statement was the following:

Update on Titanic Monetization

As previously communicated, on October 15, 2012, the Company entered into a non-binding letter of intent with an entity representing a group of individuals (the “Consortium”) working to effect a purchase of the stock of RMS Titanic, Inc. Since entering into the LOI, Premier has been negotiating exclusively with this group. The entity with whom the Company is negotiating has been soliciting federal, state, and local government entities, as well as philanthropic contributions, to build support to go public with a broader campaign to secure capital necessary to complete a transaction. They continue to request confidentiality until they feel comfortable that there is sufficient support to go public with the project.

Due to the complexity of the transaction and the many elements that are necessary for consummation, the process has taken longer that Premier had hoped. While the Company continues discussions with this group, Premier also recognizes the uncertainty of their completing a transaction and obtaining funding commitments. The Board is therefore considering the full range of strategic and financial alternatives in this regard, which likely will include retaining an investment bank, and will pursue possible paths in parallel.

The complexity of these assets, and the need to comply with the underlying court orders, require that any transaction or arrangement be more carefully structured and executed than a typical transaction. Timing is certainly a factor, but it is not the only factor. The Board and management, together, remain committed to maximizing shareholder value.

This confirms some speculation about who this consortium might be, a group of investors trying to raise capital both with taxpayer money (that is where government money comes from) and private investors (rich people with lots of money like that guy with the hoodie who heads up a social network). You can guess the problem with raising this capital. Not only is the price astronomical, it comes with a major constraint: it stays under U.S. federal court jurisdiction because you are not allowed to sell off any portion of the collection. That means the court will be over your shoulder all the time wanting reports and details of the collection from what is being stored, how it is being carefully preserved, and when it is on display.

So the upshot of it is this: Premiere is formally notifying that they are looking for other interested parties. This may be the reason, according to Seeking Alpha that Premiere’s stock price has dropped. It dropped from $2.30 to $2.10 ion 28 May and dropped much further since. Premiere might consider appealing the judge’s decision to a higher court. And it is entirely possible down the road one of two things happening: the entire collection being shuttered until resolved or the U.S. government seizing it as a national/international treasure under some obscure international treaty or possibly use a congressional resolution passed years ago as the pretext.

Sources:

1. Failed Titanic Sale Won’t Sink Premier Exhibitions(18 June 2013,Seeking Alpha)

2. Premier Exhibitions Reports Full Year and Fourth Quarter 2013 Results (28 May 2013, Global Newswire-Press Release)


Titanic, Titanic Exhibitions, Titanic Miscellaneous

Titanic News for 13 Mar 2013

1. Anna Devine writing in Leavenworth Times about dogs aboard Titanic. One interesting story was that of Rigel, a labrador, who was helpful in getting Carpathia to stop. Rigel was swimming in the water ahead of a lifeboat and his barking alerted Rostron to stop his engines before hitting the lifeboat.

Source: Pet Talk: Hero Dog That Survived The Titanic(12 Mar 2013, Leavenworth Times)

2. RMS Titanic, Inc and Premier Exhibitions are suing Thomas Zaller, Imagine Exhibitions, Inc., and Imagine Exhibitions PTE, Ltd for ” conversion, contractual breach, unjust enrichment, fraud and fraudulent inducement, trade dress (Lanham Act), and misappropriation of trade secrets.” The suit, filed late last month in federal court in Atlanta, Georgia asserts Zeller stole intellectual property from its Titanic Exhibition in Singapore in 2011 to use in competing exhibitions in Macau and other places. Premiere seeks damages for the five counts alleged in its complaint. The complaint was filed on 26 Feb 2013 and Judge William Duffey has been assigned the case.

Source: Titanic Lawsuit Launched To Sink Competing Enterprise(8 Mar 2013, Lexology.com)


Titanic, Titanic Exhibitions

Titanic Jewels Ending In Atlanta;Orlando Next Stop

Titanic
(Photo courtesy George Behe)

“Jewels of Titanic” collection in Atlanta ends on 6 Jan 2013. It then travels to Orlando’s Titanic: The Experience opening on 11 Jan 2013. The collection will be on display until 12 Mar 2013. For information about hours and to purchase tickets, go to titanictheexperience.com. Admission to the collection is complementary when purchasing ticket for Titanic: The Experience.

Source: Orlando Attractions Magazine (blog), ‘Jewels of Titanic’ to be on display at Titanic: The Experience in January,
29 Dec 2012

 


Titanic

Major Decision: Federal Judge Awards Title To Titanic Artifacts

The long awaited decision of Federal Judge Beach regarding title to Titanic artifacts has been rendered. Judge Beach granted RMS Titanic, Inc. title to fine china, ship fittings, and other artifacts recovered from the ship by the company. The condition is that the artifacts be preserved so the court will have to approve sales.

Sources:

1. The Virginian-Pilot, Norfolk Judge Awards Rights To Titanic Artifacts, 16 August 2011

2. Associated Press, Judge: Salvage Firm Has Title To Titanic Artifacts, 15 Aug 2011

 

Titanic, Titanic Exhibitions

Premier Exhibitions: Titanic Makes Money but Bodies Now RIP

Premier Exhibitions, which owns RMS Titanic Inc., and the touring Titanic exhibition, reported its third quarter fiscal results. According to the press release Titanic and other exhibitions made a “gross profit margin of $1.9 million for the quarter and $10.2 million for the nine months ended November 30, 2010.” However the Bodies portion of the business experienced a loss of $2.3 million in the third quarter. The press release states:

“Having identified the main area of challenge within our business, we have decided to discontinue any further self-operated touring Bodies exhibitions, which will materially lessen our financial exposure. We will reduce our inventory of specimens and cut the fixed license costs by $4 million annually.”

Perhaps a main reason for the Bodies losing money is the ongoing controversy about how those “specimens” are acquired for public display. Some argue that the “specimens” coming from China are former prisoners, dissidents, and others who did not voluntarily will their remains for public display. Now that Premier is discontinuing the exhibition, what will happen to those specimens?

Source: The Street, Premier Exhibitions Reports Fiscal 2011 Third Quarter Results, 11 Jan 2011

Titanic, Titanic Miscellaneous

Titanic Musings

Sorry folks for not posting in a while. Things have been somewhat hectic lately.

1) On the auction front, there has been some interesting items that sold. An affidavit signed by Titanic survivor Laura Francatelli fetched $31,937. A poster of Titanic from 1912 sold for $95,792.

2) Titanic:The Artifact Exhibition is coming to London’s 02 Arena starting on 2 Nov 2010.

3) Despite criticism from some quarters, reports indicate that bookings for the Titanic 2012 cruises are filling up.

4) Blast from the past: From press reports it appears the owners of Deepwater Horizon, the rig involved in the recent oil spill in the Gulf of Mexico, plan to use the same liability law that Titanic’s owners did in 1912. The Limitation of Liability Act limits the liability of the owner of a vessel to the value of its interest in the vessel at the end of the voyage. In 1912 this law was used by the owners to limit their liability to just under $92,000 (the value of surviving lifeboats and equipment). Thus claims made against White Star were limited to that amount no matter the actual value of the loss.

5) The recent Titanic 2 movie was exactly as predicted. It came out and sank quickly.

6) Ghostly Titanic? Every year I learn of some Titanic connected ghost story. Personally the one that makes the grade is from Ghostbusters II when Titanic docks and its passengers (all ghosts) disembark!

7) Your hear strange things on the Internet. Someone out there claimed that the salvage award was not done in the right court of law or that the judge was the wrong one. In the United States, federal courts have original jurisdiction on all admiralty and maritime cases. And judges that hear those cases are federal not state judges. Sometimes federal judges are referred to as district judges. Since federal courts are judicial districts, a federal judge can also be referred to as a federal district judge.

While people can disagree on whether salvage of Titanic was right or wrong, RMS Titanic Inc (RMST) did follow correct procedure by going to a U.S. federal court to get a salvage award. Since they had items in their possession which came from Titanic, this allowed the court (under recognized salvage law) to gain jurisdiction. The original decision, with modifications made by an appeals court, has been upheld. Just because Titanic was flying the Union Jack in 1912 does not confer immunity from salvage as some might claim. Salvage law allows for this to happen since it presumes salvage is done on behalf of the owner.