CEO Michael Burns - Said a lot of good things, most notably that his compensation package is heavily tied into the stocks performance. He has options with a strike price of $16.09. He believes we're going way higher as do I!!!
Love a CEO who is committed to a rising share price.
Also touted "Divergence" as the next big franchise to replace the twilight income in 2014 and the massive library LGF has and is building.
In 2013 he will pay off $400 million in 10% notes with money borrowed at libor. That will reduce the cost about 7% (10% to 3%) relating to bottom line profit of $28 million.
Actually it's even better. Burns used 10% but it's actually 10.25%. Each 0.25% is a lot when considering $400 million. Further, there is no way interest rates (read Libor) is going up in 2013 since there is so much slack in manufacturing capability vs output. This will clamp down inflation. So the savings spread will be 7.25% on $400 million per year.
My boys LOVE the Divergent and couldn't put the books down....they are not avid readers and they also couldn't put down the Hunger Games books, which is how I first came to invest in LGF. More importantly, I hear them talking to each other about the concepts in the book, especially intrigued by the Dauntless. I think we will have another big franchise based on my internal barometers at home...hee hee. BTW, I also read the first four chapters and am drawn into the storyline as well. I don't think it is a rehash of an old storyline that has played out too often (this was my initial concern). I enjoy the author's style of writing which makes reading effortless and you keep reading more and more forgetting the time gone by. I think there will be a gradual building of anticipation of the movie coming out during the second half of the year, coinciding with the Catching Fire fever.