DDMG Announces Shareholder Call to Discuss $100 Million Grant and Provide Modeling Guidance related to Likely Financial Impacts
Brings Total of Government and Partner Funding to More than $285 Million
PORT ST. LUCIE, Fla.--(BUSINESS WIRE)-- Digital Domain Media Group, Inc. (NYSE: DDMG), a leading digital production company focused on visual effects, original content animation and major studio co-productions, will host an investor conference call with John Textor, chairman and CEO, on Wednesday, May 30, at 10:45 a.m. EDT to discuss the impact of the $100 Million grant the company is receiving from the government of Abu Dhabi as part of the collaboration announced last week.
The conference call will begin at 10:45 a.m. EDT and will be broadcast live over the Internet, hosted at the Investor Relations section of the companys website at www.ddmg.co. The call can also be accessed via telephone by calling 800-659-2032 (U.S.) or 617-614-2712 (International) and using the passcode 21523020. A replay will be available for seven days by dialing 888-286-8010 or 617-801-6888 (International) and using the passcode 35613827.
With this latest grant, Digital Domain Media Group (DDMG) has received over $285 million of cumulative and continuing incentives, including those provided by the state of Florida and the Florida cities of Port Saint Lucie and West Palm Beach. These incentives provide meaningful benefit directly to the companys growth initiatives, providing funding for Tradition Studios, the companys animation film studio in Port Saint Lucie, Florida, and Digital Domain Institute, the companys for-profit animation and digital arts educational institute established in partnership with The Florida State University College of Motion Picture Arts.
While we are obviously focused on the growth and profitability of our existing operating business, we are quite pleased that we have been able to fund our pre-revenue, transformational growth initiatives through mutually beneficial government partnerships, said John Textor, CEO of Digital Domain Media Group. We have received cumulative grants and economic incentives of $285 million which, compared to the current valuation of our total business, provide powerful drivers of future shareholder value without dilution and with significantly reduced risk.
Including the $100 million grant from the government of Abu Dhabi as part of the collaboration announced last week, Digital Domain Media Group has received approximately $285.1 million from government entities and partners, as follows:
|State of Florida|
|Cash Grants||$20.0 million|
|Tax rebates resalable||$19.9|
|City of Port St. Lucie, Florida|
|Land (appraised value)||$10.5|
|Low-interest building and equipment lease financing||$39.9|
|City of West Palm Beach, Florida|
|Land (appraised value)||$9.8|
|Beijing Galloping Horse Film Co.||$50.0|
|Government of Abu Dhabi||
About Digital Domain Media Group
Digital Domain Media Group leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Real Steel and TRON: Legacy, as well hundreds of commercials. DDPI also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. The company is building on its success in VFX to participate as a co-producer in major studio productions and is currently in production on the upcoming live-action sci-fi feature film Enders Game. DDMG is also applying its CG expertise to produce original, family-friendly animated feature films at its subsidiary Tradition Studios. The first movie, The Legend of Tembo, is in pre-production and two more features are in development. The companys education subsidiary, the Digital Domain Institute, sets a new standard in digital media education through a pioneering public-private partnership with The Florida State University College of Motion Picture Arts. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing a studio in Beijing. http://www.ddmg.co
Safe Harbor Statement
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include comments about the Company's plans, prospects, strategies and future performance. They are made on the basis of our managements current expectations and beliefs, as well as a number of assumptions regarding future events and business performance as of the time the statements are made. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Companys control. These could cause actual results to differ materially from the results expressed or implied in the forward-looking statements.
Such differences may result from actions taken by the Company, as well as from developments beyond the Companys control, including, but not limited to:
- price volatility of the Companys common stock;
- changes in domestic and global economic conditions, competitive conditions and consumer preferences;
- our dependence on a limited number of large projects each year, and the timing of revenue flows from those projects;
- developments in the status of strategic initiatives taken by the Company;
- audience acceptance of feature films we may co-produce; and
- rapid technological developments, including new forms of entertainment.
Further information on these and other factors and risks that could affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including under the heading Risk Factors in our Registration Statement on Form S-1. These documents are available on the SEC Filings subsection of the Investors section of the Companys website at: http://www.ddmg.co.
Information on our website is not part of this press release. All information provided in this press release is as of May 23, 2012, and the Company undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
Digital Domain Media Group, Inc.
Shannon Burns, 772-345-8105
CFA, Vice President, Investor Relations
Julie Miller, 310-664-3412
Director, Communications & Marketing, Digital Domain
Source: Digital Domain Media Group, Inc.Copyright Business Wire 2012