Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,262.56 89.32 0.55%
S&P 500 1,842.98 12.37 0.68%
NASDAQ 4,034.16 11.47 0.29%
Ticker Volume Price Price Delta
STOXX 50 3,091.52 -40.05 -1.28%
FTSE 100 6,541.61 -42.15 -0.64%
DAX 9,173.71 -165.46 -1.77%
Ticker Volume Price Price Delta
NIKKEI 14,366.82 370.01 2.64%
TOPIX 1,161.71 25.62 2.26%
HANG SENG 22,822.58 151.32 0.67%

RLJ Entertainment Appoints Miguel Penella CEO



  RLJ Entertainment Appoints Miguel Penella CEO

Business Wire

BETHESDA, Md. -- January 18, 2013

RLJ Entertainment Inc., (NASDAQ: RLJE), announced today that it has named
Miguel Penella as its Chief Executive Officer. Mr. Penella most recently
served as President and Chief Operating Officer of RLJ Entertainment and is
succeeding Theodore S. Green, who is leaving RLJ Entertainment by mutual
agreement.

RLJ Entertainment was formed in 2012 through the three-way combination of RLJ
Acquisition, Inc., Image Entertainment, Inc. and Acorn Media Group and is a
premier independent licensee and distributor of entertainment content and
programming in North America, the United Kingdom and Australia with over 5,200
exclusive titles. Under the leadership of Robert L. Johnson, Executive
Chairman of RLJ Entertainment and Mr. Penella, the Company will be focused on
driving growth through the development of additional lifestyle entertainment
services for targeted audiences in a range of areas including the urban and
Hispanic markets and by using new technologies to deliver that content to
consumers across multiple platforms.

Mr. Penella served as chief executive officer of Acorn, where he oversaw
operations and was the driving force behind the worldwide expansion of both
the Acorn and Acacia brands, which are leaders in the multiplatform
distribution of British mysteries and drama and health and fitness content.
From 2004 to April of 2007, Mr. Penella was president of Acorn’s
direct-to-consumer operations developing the strategy which led to revenue and
free cash flow growth through the distribution of more than 17 million
catalogs in 2006 an increase of 80 percent in just two years.

Commenting on Mr. Penella’s appointment, Johnson said, “Miguel is a very
accomplished executive with a clear understanding of strategy, operations and
finance. We believe he will be an outstanding leader and important partner in
the growth and development of RLJ Entertainment as we intensify our focus on
developing new lifestyle focused entertainment services. Miguel and I share
the same vision for the future of the company and are focused on capitalizing
on our expertise in acquiring, distributing and developing entertainment
content that uses new technology to reach targeted audiences and establishes a
very loyal, passionate following from these consumer groups. Miguel has a
wealth of industry experience, an ability to understand and capitalize on
digital distribution opportunities, and is a disciplined operator. We look
forward to his leadership and his continued contributions to the growth of the
business.”

Mr. Penella added, “I am excited about the long-term prospects of RLJ
Entertainment. This company is really in the early stages and we have much to
accomplish in terms of operational synergies between Acorn and Image as well
as the development of other targeted genres like urban entertainment. Through
Johnson’s vast experience building genre and lifestyle oriented brands, our
unparalleled relationships in the media industry, the numerous distribution
opportunities, and by smartly deploying capital, we expect to deliver
significant returns for shareholders over time.”

Fiscal 2012 Guidance Updates

RLJ Entertainment also announced today updated proforma financial guidance for
Fiscal 2012.

The Company now expects to report proforma net revenues and proforma EBITDA
for the twelve months ended December 31, 2012 that will show lower revenues as
compared to the estimates provided in the April 2012 financial forecast in the
investor presentation given in connection with the Company’s business
combination which closed in October 2012.

The lower revenue is primarily attributable to (1) lower revenues from the
Company’s legacy Image Entertainment business from fourth quarter holiday
promotions; and (2) Agatha Christie Ltd ("ACL") revenues of $12 million in
2012, which have been excluded from 2012 estimates given certain GAAP
provisions that require the Company to report the business under the equity
method of consolidation. While RLJ Entertainment owns 64 percent of ACL,
certain structural protections retained by the minority owners of ACL prohibit
GAAP consolidation. As a result, the Company now expects to report proforma
net revenues between $180 million and $185 million. At the midpoint, this is a
15% decrease compared to the previous estimates provided.

The lower proforma EBITDA is due to the shortfall of the Company’s legacy
Image Entertainment revenues but was  partially offset by higher publishing
and film licensing income generated by the ACL unit within Acorn. As a result,
the Company now expects to report proforma 2012 EBITDA (excluding certain
one-time costs and transaction expenses and including the full year impact of
identified and quantified synergies) of between $28 million and $30 million.

Results from the Company’s legacy Acorn business were on target.

Full financial information is expected to be released in late March. To the
extent such results include any non GAAP measures they will include a full
reconciliation to GAAP. The Company does not intend to provide further
guidance or updates to the financial projection noted above.

Miguel Penella, RLJ Entertainment's CEO commented, "While we are disappointed
in our expected 2012 results, we are confident that the Company will achieve
revenue growth and continued improvement in our operating margins in 2013,
driven by a strong new release schedule and the further integration of the
Company’s operations."

About RLJ Entertainment - RLJ Entertainment, Inc. (NASDAQ: RLJE) is a premier
independent licensee and distributor of entertainment content and programming
in North America, the United Kingdom and Australia with over 5,200 exclusive
titles. RLJE is a leader in numerous genres via its owned and distributed
brands such as Acorn (British TV), Image (stand-up comedy, feature films), One
Village (urban), Acacia (fitness), Slingshot (faith), Athena (educational),
Criterion (art films) and Madacy (gift sets). These titles are distributed in
multiple formats including DVD, Blu-Ray, digital download, digital streaming,
broadcast television (including satellite and cable), theatrical and
non-theatrical.

Via its majority-owned subsidiary Agatha Christie Limited, RLJE manages the
intellectual property and publishing rights to some of the greatest works of
mystery fiction, including stories of the iconic sleuths Miss Marple and
Poirot. And through its direct-to-consumer business, RLJE has direct contacts
and billings relationships with millions of consumers.

RLJE leverages its management experience to acquire, distribute, and monetize
existing and original content for its many distribution channels, including
its branded digital subscription channels, and engages a distinct audience
with programming that appeals directly to their unique viewing interests. RLJE
has proprietary e-commerce web sites for the Acorn and Acacia brands, and owns
the recently launched Acorn TV digital subscription service.

Forward Looking Statements

This press release may include “forward looking statements” within the meaning
of the “safe harbor” provisions of the United Stated Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified by
the use of words such as “anticipate”, “believe”, “expect”, “estimate”,
“plan”, “outlook”, and “project” and other similar expressions that predict or
indicate future events or trends or that are not statements of historical
matters. Investors are cautioned that such forward looking statements with
respect to revenues, earnings, performance, strategies, prospects and other
aspects of the businesses of the Company, RLJ Entertainment, Image, Acorn and
the combined companies are based on current expectations that are subject to
risks and uncertainties.

A number of factors could cause actual results or outcomes to differ
materially from those indicated by such forward looking statements. These
factors include, but are not limited to: (1) the outcome of any legal
proceedings that may be instituted against RLJ, Image or others relating to
the business combination and the transactions contemplated thereby; (2) the
risk that the completed transaction disrupts current plans and operations as a
result of the announcement and consummation of the transactions described
herein; (3) the ability to recognize the anticipated benefits of the business
combination; (4) costs related to the proposed business combination; (5)
changes in applicable laws or regulations; (6) the possibility that Image or
Acorn may be adversely affected by other economic, business, and/or
competitive factors; (7) the ability to integrate Image’s and Acorn’s
businesses and operations; (8) the anticipated growth and growth strategies;
(9) the need for additional capital and the availability of financing; (10)
the combined company’s ability to successfully manage relationships with
customers, distributors and other important relationships; (11) the combined
company’s ability to integrate the management team and employees; (12) the
loss of key personnel or expenditure of a greater amount of resources
attracting, retaining and motivating key personnel than in the past; (13) the
compatibility of business cultures; (14) technological changes; (15) pricing
and availability of products and services; (16) demand for the combined
company’s products and services; (17) the ability to leverage and monetize
content; and (18) other risks and uncertainties indicated from time to time in
filings with the SEC by RLJ, RLJ Entertainment or Image.

Readers are referred to the most recent reports filed with the SEC by RLJ and
Image. Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made, and we
undertake no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.

Contact:

Sloane & Company
Josh Hochberg, 212-446-1892
Jhochberg@sloanepr.com
or
Erica Bartsch, 212-446-1875
ebartsch@sloanepr.com
or
Traci Otey Blunt, 240-744-7858
The RLJ Companies
press@rljcompanies.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement