presentation film production company pdf
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TRANSCRIPT
Keith Bass
FounderChairman
CEOAries Den Entourage & Entertainment Group Inc.
PO BOX 4095PO BOX 4095Los Angeles, CA 90078-4095
Phone: +1 (323) 272 6809 EXT. 1Cell: +1 (323) 497 7406Fax: +1 (323) 978 4698
Introduction
• The Film Production Company is a California based Company seeking $250,000,000 of equity financing to launch its operations.
• The Founder, Mr. Bass, expects that the business will sell a 49% interest in the business in exchange for the requisite capital sought in this business plan. The investor(s) will also receive a seat on the board of directors and regular disbursement of dividends.board of directors and regular disbursement of dividends.
• The Company will generate high margin income from the distribution of its completed films and productions.
• The Film Production Company will also generate recurring streams of revenue from the licensing and royalty fees generated from the ongoing sale of DVDs and merchandise related to the Company’s productions.
Startup CostProjected Startup Costs
Business Startup Year 2014
Initial Film Production Budgets/Investments $197,000,000
Operating Capital $5,000,000
Office Building $3,000,000
Company Fleet /Cars $300,000
Filming Equipment $2,500,000
Travel Expenses/Company Jet $35,000,000
Security Deposits $250,000
Insurance $450,000
Marketing Budget $1,500,000
Miscellaneous and Unforeseen Costs $5,000,000
Total Startup Costs $250,000,000
Use of Funds
1%
0%
1%
14%0%0%1%2%
Initial Film Production Budgets/Investments
Operating CapitalTotal Startup Costs
Financing
Equity Contributions
Investor(s) $250,000,000.00
Total Equity Financing $250,000,000.00
Banks and Lenders
Total Debt Financing $0.00
Total Financing $250,000,000.00
79%
2%
1%14% Operating Capital
Off ice Building
Company Fleet /Cars
Filming Equipment
Travel Expenses/Company Jet
Security Deposits
Insurance
Marketing Budget
Miscellaneous and Unforeseen Costs
Startup Cost Continued
• Capital to purchase & develop scripts for screenplay, and film production equipment.
• Operating/Growth Capital (Payroll, Sales & • Operating/Growth Capital (Payroll, Sales & Marketing, etc.)
• Capital to acquire smaller growing companies to expand our portfolio.
• Capital to invest and secure other assets under the Company’s name.
Expected P&L StatementProforma Profit and Loss (Yearly)
Year 2014 2015 2016
Sales $6,417,738 $7,701,286 $9,010,504
Cost of Goods Sold $1,145,126 $1,374,151 $1,607,757
Gross Margin 82.16% 82.16% 82.16%
Operating Income $5,272,612 $6,327,135 $7,402,748
Expenses
Payroll $1,365,000 $1,596,500 $1,782,312
General and Administrative $145,200 $151,008 $157,048
Marketing Expenses $256,710 $308,051 $360,420
Professional Fees and Licensure $52,190 $53,756 $55,368
Insurance Costs $111,987 $117,586 $123,466
Production Costs $1,175,960 $1,293,556 $1,422,912
Distribution Costs $776,134 $853,747 $939,122
Miscellaneous Costs $32,089 $38,506 $45,053
Payroll Taxes $204,750 $239,475 $267,347
Total Operating Costs $4,120,019 $4,652,186 $5,153,047
EBITDA $1,152,593 $1,674,949 $2,249,700
Federal Income Tax $380,356 $552,733 $742,401
State Income Tax $57,630 $83,747 $112,485
Interest Expense $0 $0 $0
Depreciation Expenses $3,964,286 $3,964,286 $3,964,286
Net Profit -$3,249,678 -$2,925,817 -$2,569,471
Profit Margin -50.64% -37.99% -28.52%
Proforma Profit and Loss (Yearly)
Year 2014 2015 2016
Sales $6,417,738 $7,701,286 $9,010,504
Operating Costs $4,120,019 $4,652,186 $5,153,047
EBITDA $1,152,593 $1,674,949 $2,249,700
Taxes, Interest, and Depreciation $4,402,271 $4,600,766 $4,819,172
Net Profit -$3,249,678 -$2,925,817 -$2,569,471
Expected PersonnelPersonnel Plan - Yearly
Year 2014 2015 2016
Senior Management $400,000 $412,000 $424,360
Marketing and Distribution Staff $390,000 $535,600 $689,585
Production Oversight Staff $220,000 $283,250 $291,748
Accounting Staff $130,000 $133,900 $137,917
Administrative Staff $225,000 $231,750 $238,703
Total $1,365,000 $1,596,500 $1,782,312
Numbers of Personnel
Year 2014 2015 2016
Senior Management 4 4 4
Marketing and Distribution Staff 6 8 10
Production Oversight Staff 4 5 5
Accounting Staff 2 2 2Accounting Staff 2 2 2
Administrative Staff 6 6 6
Totals 22 25 27
Personnel Expense Breakdown
29%
29%
16%
10%
16%
Senior Management
Marketing and Distribution Staff
Production Oversight Staff
Accounting Staff
Administrative Staff
Expected Cash Flow AnalysisProforma Cash Flow Analysis - Yearly
Year 2014 2015 2016
Cash From Operations $714,608 $1,038,468 $1,394,814
Cash From Receivables $0 $0 $0
Operating Cash Inflow $714,608 $1,038,468 $1,394,814
Other Cash Inflows
Equity Investment $250,000,000 $0 $0
Increased Borrowings $0 $0 $0
Sales of Business Assets $0 $0 $0
A/P Increases $37,902 $43,587 $50,125
Total Other Cash Inflows $250,037,902 $43,587 $50,125
Total Cash Inflow $250,752,510 $1,082,056 $1,444,940
Cash Outflows
Repayment of Principal $0 $0 $0
A/P Decreases $24,897 $29,876 $35,852
A/R Increases $0 $0 $0
Asset Purchases $1,350,000 $259,617 $348,704
Dividends $500,226 $726,928 $976,370
Total Cash Outflows $1,875,123 $1,016,421 $1,360,925
Net Cash Flow $248,877,387 $65,634 $84,014
Cash Balance $248,877,387 $248,943,022 $249,027,036
Expected Balance SheetProforma Balance Sheet - Yearly
Year 2014 2015 2016
Assets
Cash $248,877,387 $248,943,022 $249,027,036
Amortized Development/Expansion Costs $53,000,000 $53,025,962 $53,060,832
Film Inventory $0 $64,904 $326,432
Equipment $2,500,000 $2,538,943 $2,591,248
Film Library $0 $174,352 $174,352
Accumulated Depreciation ($3,964,286) ($7,928,571) ($11,892,857)
Total Assets $300,413,102 $296,818,611 $293,287,043
Liabilities and Equity
Accounts Payable $4,120,019 $4,652,186 $5,153,047
Long Term Liabilities $0 $0 $0
Other Liabilities $0 $0 $0
Total Liabilities $4,120,019 $4,652,186 $5,153,047
Net Worth $296,293,083 $292,166,425 $288,133,996
Total Liabilities and Equity $300,413,102 $296,818,611 $293,287,043
Marketing Objectives
• Establish a strong presence in targeted domestic film markets.
• Establish connections with entertainment advertising agencies and marketing firms.advertising agencies and marketing firms.
• Build a large network of financial backers. • Inform moviegoers about our new brand
and web domain name • Increase our brand awareness among the
target audience by 25% in one year
Target Customers
The target customers for Aries Den Entertainment can be characterized by the following:
• Persons who have interest movies.• Persons who enjoy the entertainment experience & are
moviegoers.moviegoers.• Persons who identify movie ideals with celebrities.• Persons who are familiar with their favorite celebrities.• Most likely live or work in on the following continents:
North and South America, Europe, Australia, and Asia.
Competition
Competitor 1 Competitor 2
Production Companies Aries Den Entertainment The Weinstein Co.
Employees 1 44
Office Locations 1 4
Market Shares (2012) * 2.4%
MoviesProduced
* 91+
Movies in Production * 17
Projects in Development 1 34
Competitive Advantage
• The capital raised will make Aries Den Entertainment a instant contender in the Hollywood contest.
• New brand with a slick and witty, but different approach to media. different approach to media.
• The capital will also allow me to acquire smaller establish companies: casting co, distribution co., comic co., & other arms of digital media companies @ competitive prices, to form one dominate company
Exit Strategy
• Mr. Bass may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Aries Den Entertainment. Based on historical numbers, the business could fetch a sales premium of up to 10 times earnings if the sales premium of up to 10 times earnings if the Company earns substantial royalty income from its previous produced films.
Management OverviewKeith Bass was born in Nashville, Tennessee on March 27, 1980. He is second of four siblings. As a youngster involved in the community and religious organizations, and he worked as a volunteer from the age of six and for a number of years, at the Samaritan Ministries, an outreach ministry dealing with the homeless population that met as many of their needs as possible. This was done during his summer vacation and holidays through junior high school. Another highlight of Keith’s life was being involved in the Boy Scouts of America. This experience and training taught him to be a leader and a strong survivor.
Also, while growing up in Nashville, Keith was heavily involved in sports, receiving awards in basketball, football, and track and field. Including, All Tournament Team for basketball, freshman year, Coca-Cola All City Team for football 1998, Nashville, TN, and Maplewood High Offensive player of the year senior year for football.
Keith started his professional career at the age of 12, beginning as an auto detailer. This era lasted until the age of 16. Since then Keith has had many jobs ranging from industrial to service, including office administration, government, sales, and management. To accompany his well-rounded profile, Keith has a Bachelor’s of Business Administration with concentration in Real Estate & Urban Development Degree from Tennessee State University in Nashville, Tennessee, class of 2005. Now, Keith is at the helm of Aries Den Entourage & Entertainment Group Inc.
Making the move to Hollywood, CA in November of 2008 was a step in the right direction to fulfill a lifetime dream and passion to become involved in the media industry. Keith has been involved in the Hollywood film industry for more than four years as an actor (imdb.me/keithbass) and production. Incorporated on December 17, 2010, Aries Den Entourage & Entertainment Group Inc. is the way to go for your modern day media source(s). Behind “the CHAIRMAN’S” highly witty life style and “I can get away with murder” personality, Aries Den is a sure success, with the purpose to make the Company a global empire.
Organizational Overview
THE END!
• The calculations shown in the presentation do not include theatrical release, PPV, DVD, & online rentals.
• Also, the totals in the forms above are just • Also, the totals in the forms above are just rough estimates and are calculated to the best estimate, we expect greater revenue in the expansion years.