LOS ANGELES, May 22, 2015 /PRNewswire/ -- Point.360 (OTCQX: PTSX) ("Point.360" or the "Company"), a leading provider of integrated media management services, today announced that it has entered into a preliminary agreement with Modern VideoFilm to combine assets to form one of the largest independent providers of post-production services, with an established client base comprising major studios, broadcast networks, cable outlets, streaming media companies, independent producers and others.
Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "Once the transaction is completed, we will greatly expand our resources, client base and ability to grow and respond to the industry's evolving needs. In conjunction with recent improvements in the Company's operating performance, this transaction gives us an opportunity to further enhance our product offering and financial capabilities for future opportunities."
Modern VideoFilm CEO Scott Avila described the combination as a "perfect marriage," noting that the two companies offer complementary services: "The combined entity will offer current and new clients of both companies a broader range of solutions for production, post and distribution to meet more of their needs with even greater efficiency."
Point.360 currently operates in Los Angeles and Burbank, delivering a strong mix of post-production and rich media management services. The services include, but are not limited to, archival, closed captioning and subtitling, editing, encoding and transcoding, mastering, restoration, scanning, vaulting and worldwide physical and digital distribution.
Modern VideoFilm has provided post-production and distribution services for more than 30 years. Its Creative Services division provides color correction, editorial finishing and other services to motion picture and television producers, with recent credits including Modern Family, Game of Thrones, The Grand Budapest Hotel, Knight of Cups and The Book of Life. Its Content Management Division maintains one of the industry's most sophisticated pipelines for encoding, quality control and digital distribution.
Under the terms of a non-binding letter of intent, Point.360 will issue convertible preferred stock in exchange for substantially all of the assets of Modern VideoFilm. Pursuant to the non-binding term sheet, Point.360 and Modern VideoFilm must reach mutually acceptable, definitive agreements executed by the parties. There can be no assurance, however, that the parties will enter into definitive agreements with respect to the proposed transaction.
Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With locations in greater Los Angeles, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide, serving studios, independent producers, corporations, non-profit organizations and governmental and creative agencies. Point.360 provides the services necessary to edit, master, reformat and archive clients' audio and video content, including television programming, feature films and movie trailers. Point.360's interconnected facilities provide service coverage to all major U.S. media centers. The Company also rents and sells DVDs, Blu-Ray and video games directly to consumers through its Movie>Q retail stores. See www.Point360.com and www.MovieQ.com.
About Modern VideoFilm
Modern VideoFilm has been providing post-production and distribution services to the film, television and media content industries for more than 33 years. Its clients include major movie and television studios, as well as leading on-demand streaming services, online digital media retailers, ecommerce sites, interactive entertainment companies, and other commercial entities across the U.S. and around the world. Modern's staff comprises more than 300 dedicated and talented artists, technicians, engineers, producers, client representatives and support personnel.
Modern VideoFilm's Creative Services division offers complete, end-to-end resources for the production of original motion picture, television and media content. Its Content Management division provides comprehensive solutions for the management, repurposing, distribution and archiving of entertainment content. See www.mvf.com.
Certain statements in Point.360 press releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding (i) the Company's projected revenues, earnings, cash flow and EBITDA; (ii) planned focus on internal growth and acquisitions; (iii) reduction of facilities and actions to streamline operations; (iv) actions being taken to reduce costs and improve customer service and (v) new business and new acquisitions. Please also refer to the risk factors described in the Company's SEC filings, including its annual reports on Form 10-K. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from those expected or anticipated in the forward-looking statements. In addition to the factors described in the Company's SEC filings, the following factors, among others, could cause actual results to differ materially from those expressed herein: (a) lower than expected net sales, operating income and earnings; (b) less than expected growth; (c) actions of competitors including business combinations, technological breakthroughs, new product offerings and promotional successes; (d) the risk that anticipated new business may not occur or be delayed; (e) the risk of inefficiencies that could arise due to top level management changes and (f) general economic and political conditions that adversely impact the Company's customers' willingness or ability to purchase or pay for services from the Company. The Company has no responsibility to update forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.