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The Film Department (NASDAQ:TFDI), a recently formed independent movie production company, is expected to go public this week. According to this LA Times blog post: "The surprise filing is part of move by the Film Department, which was founded in 2007 by industry veterans Mark Gill and Neil Sacker, to pay off nearly $42 million in debt and recast itself into a full-fledged studio that not only finances movies but also markets and distributes them."

Business Overview (from prospectus)

The Film Department is an independent motion picture finance and production company that produces star-driven commercial movies with net budgets between $10 and $45 million. The Company was founded in 2007 by Mark Gill and Neil Sacker, a management team with more than 40 years of combined experience as senior film industry executives at such motion picture studios as Warner Bros., Columbia Pictures and Miramax Films.

Offering: 6.5 million shares at $12 - $14 per share. Net proceeds will be used for working capital and other general corporate purposes, including the repayment of debt.

Lead Underwriter: IPO Solutions

Financial Highlights:

Our revenue for the nine months ended September 30, 2009 was $13.0 million as compared to revenue of $0 for the nine months ended September 30, 2008... Our operating expenses for the nine months ended September 30, 2009 were $7.8 million, an increase of $1.6 million, or 27.5%, as compared to operating expenses of $6.2 million for the nine months ended September 30, 2008... Our interest expense for the nine months ended September 30, 2009 was $9.0 million, an increase of $4.6 million from $4.4 million for the nine months ended September 30, 2008... Our net loss for the nine months ended September 30, 2009 was $14.2 million, an increase of $3.7 million, or 35.4%, as compared to net loss of $10.5 million for the nine months ended September 30, 2008.

Competition:

Motion picture production and distribution are highly competitive businesses. We face competition from companies within the entertainment business and from alternate forms of leisure entertainment including television, video games, internet, and other cultural activities as well as from sporting events, outdoor activities and travel. We compete with the major studios and independent studios and production companies for the acquisition of literary and film properties, the services of actors, directors, producers and other creative and technical personnel, all of which are essential to the success of our business. The success of any of our motion pictures is dependent not only on the quality and audience acceptance of a particular film or program, but also on the quality and acceptance of other competing motion pictures and other leisure time activities available to the marketplace at or near the same time.

Additional Resources:

Update: The company is expected to price its IPO the week of 4/19.

Source: The Film Department Hopes IPO Will Transform Company Into Full-Fledged Studio