Artisan seeks IPO
Distribber of 'Blair Witch' files with SEC
The fast-growing indie producer-distribber will use the proceeds of the IPO to extinguish some $15 million in debt as well as pay interest expenses and fund working capital needs, acquisitions and investments, according to a filing with the Securities and Exchange Commission.
"Our goal is to be the largest and most profitable independent distributor of filmed entertainment product," the company said. The filing was preliminary and didn't provide details of how much of the company will be sold to the public. However, industry sources have speculated that it's likely to be in the neighborhood of 20%.
Artisan broadly outlined its strategy going forward. The first order of business is to build and capitalize on its large film library, which Artisan clearly considers the cornerstone of its business. The company, which brought the world "The Blair Witch Project" last summer, points to its large-scale retail distribution capability and its work to establish brands, including its own Family Home Entertainment (FHE) moniker, as well as others it has acquired rights to, like Discovery and Hallmark.
Artisan will focus mainly on projects with under $30 million in negative cost, with most slipping under the $15 million range.
Management will need to convince investors that the company is much more than a "Blair Witch" flash in the pan, which is why it stresses its library, strong distribution channels and international reach as well as new and expanding units like consumer products and merchandising and licensing.
Artisan said revenue in 1999 rose to $383 million from $174 million and operating profit doubled to $33 million from $16.5 million. Net income jumped to $15.7 million from $3.1 million.
Artisan said its CEO Mark Curcio received a base salary of $523,688 in 1999 and a bonus of $1 million. Co-presidents Amir Malin and William Block each received base salaries of $468,563 and bonuses of, respectively, $1 million and $500,000.
Curcio, Malin and Block hold stakes in Artisan as well. In all, executives and directors own nearly 93% of the company.
